What Accounts for Rising Profitability of Chinese Industrial Enterprises?

摘要

Based on the latest data, this paper analyses the profitability status of Chinese enterprises and the reasons behind profitability. The authors hold that the profitability of Chinese industrial enterprises has improved significantly whilst the degree of monopolization and extent of entry barriers in the industrial sector has decreased. With the exception of a few resource and administrative monopolizing industries, the increasing profitability of Chinese enterprises indicates rising competitiveness. Improved management level, efficient assets operation, enhanced investment benefits and salary-transfer-profit are all contributing to the profitability of enterprises.